Euro Surges to Two-Week High as Markets Bet on Bigger ECB Hike
- Money markets see almost 50% chance of a 50bps hike this week
- Strategists express doubts over euro move’s longevity
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The euro jumped to a two-week high and short-dated bonds slid across Europe as markets priced in a more aggressive pace of interest-rate hikes from the European Central Bank.
The common currency rose as much as 1.2% to $1.0269 after reports that ECB policy makers may consider a 50-basis-point rate hike at their meeting on Thursday, larger than the quarter-point move signaled in June. The currency pared the gain in trading in New York.